Uranium spot price   Spot price figures supplied by Numerco

Five Key Points

    • Australia is a tier 1 mining jurisdiction and destination of choice for utilities
    • Located in South Australia, the premier and most advanced uranium state in Australia
    • Port Adelaide has established uranium shipping routes for international markets
    • Idled restart mine in care & maintenance, can quickly respond to market conditions
    • 2mlbs per annum base case production, which can be expanded
    • 71.6Mlb U3O8 JORC Resource
    • Additional 190Mlb U3O8 exploration target. 2,600km2 underexplored uranium province
    • All-in Cost in lowest international cost quartiles of ~ US$32 /lb
    • All-in Sustaining Cost in lowest international cost quartiles of ~ US$27 /lb
    • Low CAPEX outlay of only US$62m
    • 1 of only 4 fully permitted mines in Australia (3 of which located in South Australia)
    • Uranium export permit recently renewed
    • Native Title agreements are all in place
    • Operational permits and licences in place, lower risk on timing of start up
    • MD / CEO / Strategic Adviser ex-Husab Mine (Extract Resources / Kalahari Minerals)
    • Technical Director ex COO of Laramide and Heathgate
    • Board and management experienced in constructing & operating uranium mines
    • Enviable long term supply relationships with utilities world wide

Advantages of South Australian Jurisdiction

South Australia is a major exporter of uranium oxide to the world and currently attracts many companies (including global majors) exploring, developing and mining uranium in the state.

The South Australian Government has made it clear that it openly and actively supports exploration for uranium as it forms a significant part of South Australia’s mineral resource. Despite having 23% of the world’s uranium resources, South Australia only produces around 10% of the world’s uranium, indicating that there is significant potential for long term production, expansion and demonstrated geology with high potential for further discoveries.

Uranium Market

Current market conditions are not supportive of Honeymoon recommencing production, particularly with the current sustained low uranium market prices.

Ultimately the investment decision to recommence production at Honeymoon will depend on the anticipated market price of uranium and ensuring the project’s positive NPV over Life of Mine satisfy all stakeholders. This critical aspect underpins the motivation for pursuing a staged development approach as the Company technically de-risks the Honeymoon Project to ensure all assumptions surrounding the deposit and process plant are fully evaluated prior to recommencing production, and thereby ensuring Honeymoon can operate in the lowest cost quartile of competitive global producers.

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